“The reality is it will be a daunting task requiring tens of billions of dollars in capital and years to build sufficient scale and density to replicate existing networks like FedEx,” said Mike Glenn, CEO of Fedex Services during the delivery and shipment company’s strong third-quarter earnings call Wednesday. He added that Amazon seems to be developing facilities geared toward local deliveries, while FedEx works on a broad global network.

Glenn also moved to extinguish concerns that Amazon creation of a delivery network could also mean the loss of a major customer. He told analysts that no single client represented more than 3% of revenue.

Nomura Securities lowered Fedex’s target price form $190 to $180 a share, saying that perceived competition from Amazon could still weigh on the stock.

“While any new entrant is unlikely to achieve similar network density and revenue per stop near that of Fedex and UPS for the foreseeable future, Amazon’s strategic moves likely remain a threat to sentiment over the near term, even absent any EPS risk,” wrote a team of analysts at Nomura Securities led by Matt Troy.